European stocks fell and the US dollar rose on Monday, due to concerns that the US Federal Reserve is not eager to strengthen its balance sheet, and investors are also wary of the rest of US President Donald Trump’s term.
Last week, the Stoxx Europe 600 SXXP rose 3%,
it decreased by 0.4%.
US futures contracts ES00,
fall, and the dollar DXY,
got up.
Securities yields TMUBMUSD10Y,
moving in the opposite direction of prices, raised concerns that the Federal Reserve would be less interested in maintaining the rate of its purchases. Federal Reserve Vice President Richard Clarida said Friday he expects the current rate of bond buying to remain until the end of the year. Other Fed officials began talking later in 2021 about reducing purchases.
Utilities SX6P,
often called bond attorneys, was the weakest in Europe on Monday.
Markets are also keeping a close eye on politics, as House Speaker Nancy Pelosi has said indictments will be introduced if Trump is not removed by calling for the 25th Amendment. Vice President Mike Pence, the target of Trump’s anger, is apparently not interested.
‘This morning, the markets start with a small jolt on the risk axis, as investors may reach a short-term inflection point. However, it is too early to say that investors have planted their feet firmly and continue to roar like lions backed by a long vaccine track paved with US stimulus, ” said Stephen Innes, Axi’s global market strategist.
Of shares on the way, Signature Aviation SIG,
rose 8% to 438 pence after accepting a $ 4.63 billion bid from Global Infrastructure Partners valuing the airline at 405 pence a share. Competitive private equity groups Carlyle Investment Group and Blackstone have indicated separate interest in the company.
JD Sportmode JD,
increased by 5%, after saying its pre-tax profit for the year ended 31 January would be at least £ 400m, compared to market expectations of £ 295m. The sporting goods retailer added that next year’s profits will grow between 5% and 10%.
Smith & Nephew SN,
the UK manufacturer of medical devices, fell by 3% after saying that adjusted revenue for the fourth quarter fell by 7%, hurt by the COVID-19 pandemic that led to the postponement of medical procedures.